The transaction charge waiver from Asia’s oldest stock exchange Bombay Stock Exchange on Sensex stocks may bring back liquidity to the exchange. Though, BSE being in the capital market business for the last 141 years, the exchange lags far behind from the newer entrant National Stock Exchange in terms of turnover, volumes and exposure to FIIs. BSE, in its latest move, has waived off transaction charges from the 30 constituent stocks of S&P BSE Sensex. “BSE …. has waived off the transaction charges on S&P BSE SENSEX 30 Stocks with effect from March 12, 2018. This move is aimed at facilitating and encouraging participation by retail investors in financially sound companies,” BSE said in a press release.
“It’s an intent to bring liquidity back into the exchange,” Reuters reported citing Deven Choksey, MD at KR Choksey Shares and Securities. “Whether it brings the volumes remains to be seen,” he added. According to the latest data available with the stock exchanges, NSE is way ahead of BSE in terms of stocks traded, volumes, turnover. As on 23 February, the net turnover of the total stocks listed on Bombay Stock Exchange was at Rs 3,979.95 crore while the total turnover for the 50 shares of Nifty 50 index topped a turnover of Rs 12,704.32 crore.
Following the development, investors trading in the blue-chip heavyweight shares of companies such as Reliance Industries, Bharti Airtel, Infosys, ITC, HDFC, HDFC Bank, Maruti Suzuki, Tata Motors, State Bank of India, ICICI Bank and Axis Bank through BSE will enjoy the benefit of zero transaction charges with effect from 12 March 2018. The trading members of the BSE pay Rs 1.5 per trade for the monthly volume of up to 1 lakh and Rs 1.25 for 1 lakh to 3 lakh number of transactions.
All the stocks listed on Bombay Stock Exchange have been classified into various groups namely A, B, E, IF, IT, M, MT, P, SS, ST, T, X, XT, Z and ZP. Among the ‘A’ group of shares, the most followed segment constitutes about 300 stocks whereas group B has over 3,000 stocks. The classification is based on various factors such as market capitalisation, trading volumes, monthly average, profits, dividends, the frequency of trade and shareholdings.